A project is exposed to several risks which include risks arising from market changes, operational aspects. social and environmental issues. legal and regulatory controls, and the like which are more external to the enterprise than internal. Those apart, there are several internal and external risks of technical and legal types, both predictable 'and unpredictable in character. They include political and environmental risks, design-related risks, supply-related risks, construction-related risks and acts of God, running through the entire life cycle of tile project.
An enterprise does not always insure against all types of losses and damage nor are all classes of risks insurable. What is usually done is to identity the total risks, analyse them ,and classify them on the bases of their significance then take risk avoidance and mitigation measures, and out of the remaining insurable risks retain the insignificant ones to self as self-insurance of include in contractors scope arid finally transfer the serious ones to insurers under various classes of insurance policies. Risk shall be analysed with reference to their potential impact on the projector classified in the order of severity. Risk management strategies have to be formulated for avoiding risk and reducing their impact. Insurable and uninstallable ricks have to be categorized and treated separately, and a.strategy formulated for managing every class or category of potential risk separately. Risk shall be dialyses with reference to their potential impact on the project and classified in the order of severity. Risk management strategies have to be formulated for avoiding risk and reducing their impact. Insurable and insuperable risks have to be categorized and treated separately, and a strategy formulated for marinating every class or category of potential risk separately.
No comments:
Post a Comment